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Pontifical Council for Justice and Peace
Towards a better distribution of land

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  • CHAPTER I PROBLEMS CONNECTED WITH THE CONCENTRATION OF LANDHOLDINGS
    • The Management of Agricultural Exports
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The Management of Agricultural Exports

9. In many developing countries, the ways in which agrarian policies have managed the export of agricultural production have often further encouraged the process of the concentration of land in the hands of the few.

Price control policies have been adopted for certain products, favouring large agro-industrial concerns and export growers, but penalizing small growers producing traditional farm products.(9) Other policies have meant that the whole infrastructure and service system tends to be run in the interests of large farmers. In yet other cases, tax policies concerning agriculture have worked to the profit of certain landowners (individual physical persons or companies), allowing them to recoup fixed investments in a relatively short time, either by not envisaging progressive taxes or in some way facilitating tax evasion. Lastly, certain policies facilitating loans to the agricultural sector have distorted price relations between land and work.

All this has encouraged a process of accumulation based on investment in land, with small farmers, who are often on the sidelines of the land market, being excluded from the process.

The rise in land prices and the fall in the supply of jobs owing to agricultural mechanization have made access to credit, and hence the acquisition of land, difficult for small farmers if they are not grouped in associations.

10. The aim of reducing international debt through exports can lead to a fall in the standard of living of small farmers, who often do not produce export items.

The lack of a public service of agricultural training prevents such farmers, who of necessity engage in a predominantly subsistence-style farming using traditional techniques, from acquiring the necessary technical training for a correct use of the cultivation techniques required by new products. They are poorly integrated into the market, and their difficulties in gaining access to credit curtail their power to purchase the inputs required by new techniques. Poor knowledge of the market means that they can neither keep abreast of trends in product prices nor reach the quality required for export.

If the market prompts small farmers to grow export crops, this often takes place at the expense of production intended mainly for their own consumption, thus putting farming families at considerable risk. Unfavourable climatic or market conditions can lead to a vicious circle of hunger, so that such families contract debts that then force them to give up ownership of their land.




9) For an analysis of these policies in support of agricultural exports and large-scale commercial farming, and their effects on poverty, see: World Bank, World Development Report 1990, Washington, D.C., pp. 58-60; World Bank, World Development Report 1991, Washington, D.C., p. 57.






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